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Forecasting intermittent demand: a comparative study

Research output: Contribution to Journal/MagazineJournal articlepeer-review

  • Ruud H. Teunter
  • Laura Duncan
<mark>Journal publication date</mark>2009
<mark>Journal</mark>Journal of the Operational Research Society
Issue number3
Number of pages9
Pages (from-to)321-329
Publication StatusPublished
<mark>Original language</mark>English


Methods for forecasting intermittent demand are compared using a large data set from the UK Royal Air Force. Several important results are found. First, we show that the traditional per period forecast error measures are not appropriate for intermittent demand, even though they are consistently used in the literature. Second, by comparing the ability to approximate target service levels and stock holding implications, we show that Croston's method (and a variant) and Bootstrapping clearly outperform Moving Average and Single Exponential Smoothing. Third, we show that the performance of Croston and Bootstrapping can be significantly improved by taking into account that an order in a period is triggered by a demand in that period.